Why pricing could make or break your business

Time to talk about a boring concept nobody likes to think about, but will help your business succeed where others fail.

Pricing

Pricing is more important than you think it is. Most people just look at how other things are priced and price their products accordingly. However, they never look or think about the margins of other products when they price their products.

What is margin? It's the profit you get after making a product. For the purposes of this discussion, I'm talking about the margin between the production of the product and the retail price.

This does not include writing the book, or drawing the art. It only means how much it cost to print the product and get it to market. So, if you paid $1,000 to have an artist create a pin-up for you, this does not factor into the margin for the purposes of this discussion. That will be factored into your overall profit margin, not the margin on your production costs.

For this, I'm specifically talking about the cost of the physical good to p…